Q&A: Silvio Kutic, CEO, Infobip

30 November 2015 |

Silvio Kutic, CEO at Infobip, talks to Capacity about the importance of A2P SMS as a revenue stream for carriers, and how best to monetise it.


SilvioKuticWhat is Infobip’s main aim and how long has it been operational?

Infobip lets businesses, operators, and consumers make better use of the most versatile communications channel in the world – SMS.

Over the past 14 years Infobip has grown from a project with two developers and two computers into a global business with over 700 employees and 40 offices around the globe, processing over 100 million SMS messages every day. 


Who are Infobip’s key customers and what regions are these in?

Infobip works with enterprises all over the world, helping them take advantage of professional SMS technology. Typically, this is as notification and alerting channel, or as a service channel for two-factor authentication and better consumer engagement. 

Infobip’s broad customer base ranges from banks and financial institutions to OTT players and social networks. It also includes operators themselves, connecting all players in the A2P messaging ecosystem through Infobip’s platform. 


Is SMS still an important revenue stream for carriers?

The decline of person-to-person SMS is no secret and it is unlikely this trend will reverse. However, SMS remains a popular notification and service channel for consumers. 

This is driving the growth of A2P SMS traffic and increases operator revenues. Enterprises are now reliant on SMS as a messaging channel to reach, authenticate, and engage with their end users, and operators play a vital role meeting ever-growing demand for enterprise messaging. 


How can carriers best monetise SMS?

Despite the fact that A2P messaging represents a lucrative opportunity, many operators lack their own A2P messaging specific platform that comes with particular requirements outside of the mainstream. 

Instead, messaging providers have bridged this gap in recent years, acting as the connection between those businesses that need A2P messaging and the operators looking to tap into this revenue stream. Now the relationship has shifted to better benefit the operator.

For an increasing number of operators, Infobip operates a Business as a Service (BaaS) model, which removes the complexity of managing the A2P messaging process for the operator. 

Through this approach, Infobip handles the entire process including client and technical support. There’s no involvement required from the operator. By removing the need for any investment on the part of the operator, BaaS offers an investment-free way to turn professional messaging into a significant source of revenue.   


What services does Infobip offer in the SMS space?

Infobip offers a full range of SMS services, everything from basic A2P and two-way SMS services to specialised products for banks and financial institutions, turnkey two-factor authentication, app engagement tools, carrier billing, and dedicated operator solutions.

The BaaS model, in particular, lets operators benefit from Infobip’s global reach and client base, and monetise their network capacities without any investment or major operational involvement.  


What can we expect from Infobip in 2016?

Infobip is growing rapidly and is planning or already executing further expansion for China, Latin America, CIS and Middle East to meet the increasing demand for its SMS capabilities around the globe. 

From a technology perspective, Infobip is continuing to invest in R&D, data centres, and security, to maintain its proprietary messaging platform. Infobip also has several new products in the pipeline for both operators and enterprises, designed to improve A2P messaging for all in the ecosystem.